Global Crossing Ltd

COURTS J.P. Morgan Chase & Co., Goldman Sachs Group Inc. and five other banks sued by shareholders of Global Crossing Ltd., owner of a worldwide fiber optic cable network, must defend themselves against a stock fraud suit, a judge ruled. U.S. District Judge Gerard E. Lynch refused the banks' request to dismiss all but four claims against them.

Global Crossing Ltd., whose bankruptcy filing two years ago cost investors $40 billion, plans to emerge from Chapter 11 protection as early as this week, people familiar with the matter said. Singapore Technologies Telemedia, which is controlled by Singapore's government, will own a 61.5% stake in the company after paying $250 million. Creditors will own the rest.

Telecommunications company Global Crossing Ltd. could emerge from bankruptcy protection as early as next week after regulators cleared the $250-million sale of a majority stake to Singapore Technologies Telemedia, people familiar with the deal said Thursday. STT's bid to buy a 61.5% stake in Global Crossing must close by Oct. 14, under an earlier agreement. "Both parties are working very hard to meet that deadline.

Singapore Technologies Telemedia's proposed acquisition of Global Crossing Ltd. is being formally opposed by the U.S. Defense Department because of national security concerns, according to federal officials. The Pentagon is concerned about foreign ownership of Global Crossing because it provides the U.S. with commercial and military Internet links. The objection was conveyed July 11 in a letter to the Treasury Department, an official familiar with the letter said.

Singapore Technologies Telemedia, a government-owned telecommunications company, said it planned to name former U.S. Defense Undersecretary Pete Aldridge to the board of Global Crossing Ltd., the troubled network operator it wants to buy. Aldridge, who retired from government work in May, would be appointed to Global Crossing's security committee, responsible for ensuring the integrity of the company's fiber optic network, a spokeswoman for ST Telemedia said.

The Pentagon plans to oppose an agreement by Singapore Technologies Telemedia to buy a majority stake in Global Crossing Ltd., an official familiar with the situation said Tuesday. Defense Department officials cited national security concerns in a memorandum to oppose the acquisition of the 61.5% stake by STT, which is owned by an arm of the Singapore government, said the official who asked not to be identified.

Troubled telecommunications company Global Crossing Ltd. on Tuesday won its bid to continue exclusive talks to be bought by Singapore Technologies Telemedia. The decision, issued by U.S. Bankruptcy Judge Robert E. Gerber, represents a loss for XO Communications Inc. and other suitors who have been blocked by the court-mandated exclusivity period. The judge agreed to extend that period until Oct. 28.

Carl Icahn's XO Communications Inc., a telecommunications company, said it now owns about $790 million of Global Crossing Ltd. bank debt as part of a plan to acquire the fiber-optic network operator. XO, based in Reston, Va., said it bought $495 million of the $2.21 billion in outstanding loans in a tender offer, adding to the $294 million it already owned. The company said it paid 22 cents on the dollar in the tender offer.

XO Communications Inc., ratcheting up the bidding war for Global Crossing Ltd., offered $200 million to Global bondholders to get them to back its bid for the company, sources familiar with the situation said. XO, a regional telephone company looking to expand globally, is adding the $200 million to its existing $495-million bid for Global Crossing's bank debt. Global Crossing, which filed for Bankruptcy Court protection in January 2002, previously agreed to sell a 61.